President Bola Tinubu has attributed the impressive profit surge recorded by companies listed on the Nigerian Exchange (NGX) in the first half of 2026 to the implementation of his administration's economic reforms. Speaking at a business forum in Lagos, Tinubu highlighted that the reforms, including the removal of fuel subsidies and foreign exchange liberalization, have begun to yield tangible results for the corporate sector.
Profit Surge Details
According to data from the NGX, listed firms reported a combined profit after tax of ₦3.2 trillion in H1 2026, a 45% increase compared to the same period last year. This growth was driven by sectors such as banking, oil and gas, and consumer goods, which benefited from improved operational efficiencies and favorable policy changes.
Tinubu noted, "The reforms we implemented were necessary to reset our economy. The profit surge we are seeing is a clear indication that businesses are adapting and thriving under the new dispensation." He added that the government remains committed to creating an enabling environment for private sector growth.
Impact on the Economy
Analysts view the profit surge as a positive signal for the broader economy, potentially attracting more foreign investment and boosting investor confidence. However, some critics argue that the reforms have led to increased costs of living, which could offset the corporate gains.
The President emphasized that the government is working to mitigate the social impact of the reforms through targeted interventions, including social safety nets and support for small and medium-sized enterprises (SMEs). He assured that the long-term benefits would outweigh the short-term pains.
Market Reactions
The NGX All-Share Index responded positively, crossing the 100,000 mark for the first time in July 2026, reflecting investor optimism. Market capitalization also rose to ₦62 trillion, up from ₦55 trillion at the start of the year.
"The reforms have indeed reshaped the corporate landscape," said a senior economist at a Lagos-based investment firm. "The profit surge is not just a number; it represents better resource allocation and increased productivity."
Looking Ahead
As the government continues its reform agenda, Tinubu pledged to maintain fiscal discipline and pursue policies that ensure sustainable growth. The President called on more companies to take advantage of the improved business environment to expand and create jobs.
"Our goal is to make Nigeria a premier investment destination in Africa," Tinubu concluded. "We are on the right path, and the results are beginning to show."
